The gear indicator is likely a bad indicator, and not related to the shifting problem.
Intermittent problems have started, on my Eaton Fuller 10 speed autoshift. I use the H (Hold) position, and shift manually, with the thumb button.
When I stop fast, it will sometimes fall out of gear.
A couple of recent mornings, it would go into Reverse, but felt like there was no clutch, after it was in gear. The reverse behavior went away, after it warmed up a bit.
From another with similar problems:
I had numerous problems with my eaton 10 speed auto shift, threw many thousands in parts at it to find that it was the wiring harness. This go around, the shift tower has malfuntioned and at a cost of 1400.00 I pulled the auto and went manual. So if you have a diagnostic done on your system and they tell you it will cost you a $2500.00 part, keep me in mind as I am selling my transission for $1200.00 and it has an new ECU, new power interface module, new X/Y shifter, it just needs a tower.
There was no conversion for my particular transmission. We just bought a used 10 speed manual and swapped them. The only reason why we could not convert the auto to manual was the Hi/Lo air splitter would not bolt up with the automatics housing and the mechanic did not want to try to drill and modify it. Hey a really good used transmission can be bought for under 3 grand, as a matter of fact I saw a couple of rebuilds on E-bay with warrantees for $2700.00 plus shipping. Volvo (Lake City, FL) is a bunch of idiots to tell you it would take 10 grand to fix the problem, yes a new auto shift transmission, screw that, check E-bay for eaton transmissions
here is one:
http://cgi.ebay.com/ebaymotors/EATON...D-TRANSMISSION